Turkey and the EU: the importance of markets

Abstract

The institutionalisation of a market-oriented economy under the rule of law can be an effective factor for the stability and consolidation of democracy. Turkey has had a weak market economy with weak rule of law, caused in part by an unplanned and irrational state allocation of rents. Just as the European Union promoted democratic consolidation and the rule of law in the Spain, Portugal and Greece, it can accelerate the transformation of Turkey's economy and facilitate the consolidation of Turkey's democratic institutions. The postponement or interruption of Turkey's accession process risks increasing political instability in Turkey and the region. Integration is in the interests of both the EU and Turkey.